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Immigration Policy and Macroeconomic Performances in France

d'Albis, Hippolyte and Boubtane, Ekrame and Coulibaly, Dramane (2013): Immigration Policy and Macroeconomic Performances in France.

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This paper proposes a quantitative assessment of the interaction between the Gross Domestic Product (GDP) per capita and the unemployment rate, and permanent immigration in France over the period 1994-2008. It uses a new database where immigration is measured by the flow of issuing residence permits of more than one year to foreigners. The flow is distinguished by age, sex and nationality of the migrant and depends on the reason for issuing the permit. Estimation of vector autoregression models (VAR) indicates that immigration increases GDP per capita, in particular, for female immigration and family immigration. In addition, family immigration from non-OECD countries reduces unemployment. Moreover, GDP per capita increases immigration while the unemployment rate reduces labor migration.

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